Lingo Media Reports First Quarter 2016 Results
Lingo Media Corporation (TSX VENTURE: LM) (OTCQB: LMDCF) (“Lingo Media” or the “Company“), an EdTech company that is ‘Changing the way the world learns English’ through innovative online and print-based technologies and solutions, announces its financial results for the first quarter ended March 31, 2016. All figures are reported in Canadian Dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.
“We are pleased to report our financial results for Q1 2016. Our revenue growth was in excess of 16% over Q1 2015, reflecting growth in both our digital learning market in Latin America and our publishing royalty business in China. While profitability was down from last year, it was due to a net foreign exchange loss of $125,586, resulting in total comprehensive income of $111,787 for the quarter vs.$146,598 last year. We look forward to providing shareholders with further updates as we continue to build the business with strategic distribution partnerships with Telefonica and Cengage Gale and execute on new market expansion opportunities in North America and beyond”, said Michael Kraft, President & CEO of Lingo Media.
Q1 2016 Operational Highlights
- Online English Language Learning:
- completed the development of ELL Studio, a speech recognition and practice pronunciation mobile app that enables learners to practice their spoken English skills anywhere, any time
- expanded Latin America sales channel with the strategic hire of Luis Ortiz, who comes to the Company with more than 20 years of experience where he has been instrumental in delivering significant sales growth in Latin America
- entered into a distribution partnership with Telefonica Educación Digital S.L.U, which has been granted the rights to market, sell and distribute ELL Technologies’ full product suite of English language training products in Peru
- Print-Based English Language Learning:
- expanded the market for PEP Primary English and Starting Line textbook programs by launching into new Chinese provinces
- subsequent to this quarter, loans payable of $580,000 were repaid in full and retired
Financial Highlights for the First Quarter Ended March 31, 2016
|First Quarter Ended March 31 st||2016||2015|
|Income before amortization,|
|share-based payments, depreciation,|
|finance charges and taxes||493,936||332,164|
|payments, and depreciation||225,732||210,998|
|Finance charges, taxes, foreign|
|Total comprehensive income||111,788||146,598|
|Earnings per share||$||0.00||$||0.01|
- Revenue for the period ended March 31, 2016 totalled $756,858 as compared to $651,627 in 2015, a 16% increase.
- Operating expenses for the period ended March 31, 2016 totalled $262,922 compared to $319,463 in 2015.
- Net profit for the period ended March 31, 2016 was $50,830 or $0.00 per share (basic) based on 29.7 million shares as compared to 225,429 for 2015 or $0.01 per share (basic) on 22.1 million shares.
- Income before amortization, share-based payments, depreciation, finance charges and taxes was $493,936 compared to $332,164 in 2015.
The Company’s management team will host a conference call for investors on Tues May 31, 2016, at 11:30 a.m. Eastern Time, to provide a corporate update and to discuss its financial results.
To listen to the live conference call, parties in Canada and the United States should dial 877-858-5743, access code 641103. International parties should call 858-609-8959 using access code 641103. The call will be recorded and available for review at www.lingomedia.com.
Lingo Media will be hosting and moderating a Q&A period on the call. Participants will be able to enter a moderated queue to ask a question live on the call, or to submit a question via email. To submit one or more questions to the executive management team, please email your question to firstname.lastname@example.org with the words “Investor Question for Conference Call” in the subject line. The Company’s management will endeavour to address as many questions as possible in the hour allocated to the call.
The unaudited condensed interim financial statements for the quarter ended March 31, 2016 and Management Discussion & Analysis are available at www.sedar.com.
Lingo Media is a global EdTech company that is ‘Changing the way the world learns English’, developing and marketing products for learners of English through various life stages, from classroom to boardroom. By integrating education and technology, the company empowers English language educators to easily transition from traditional teaching methods to digital learning.
Lingo Media provides both online and print-based solutions through two distinct business units: ELL Technologies and Lingo Learning. ELL Technologies provides online training and assessment for English language learning, while Lingo Learning is a print-based publisher of English language learning programs in China.
Lingo Media has formed successful relationships with key government and industry organizations internationally, with a particularly strong presence in Latin America and China, and continues to both extend its global reach and expand its product offerings.
Portions of this press release may include “forward-looking statements” within the meaning of securities laws. These statements are made in reliance upon Sections 21E and 27A of the Securities Exchange Act of 1934, which involve known and unknown risks, uncertainties or other factors that could cause actual results to differ materially from the results, performance, or expectations implied by these forward-looking statements. These statements are based on management’s current expectations and involve certain risks and uncertainties. Actual results may vary materially from management’s expectations and projections and thus readers should not place undue reliance on forward-looking statements. Lingo Media has tried to identify these forward-looking statements by using words such as “may,” “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate” and similar expressions. Lingo Media’s expectations, among other things, are dependent upon general economic conditions, the continued and growth in demand for its products, retention of its key management and operating personnel, its need for and availability of additional capital as well as other uncontrollable or unknown factors. No assurance can be given that the actual results will be consistent with the forward-looking statements. Except as otherwise required by US Federal securities laws, Lingo Media undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason. Certain factors that can affect the Company’s ability to achieve projected results are described in the Company’s filings with the Canadian and United States securities regulators available on www.sedar.com or www.sec.gov/edgar.shtml.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
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